To understand the meaning of Financial Planning, let us first understand the different meanings of the two words, Financial means Hindi – Money, Money, or Finance, and Hindi means of Planning – Planning,
In this way Financial Planning has Hindi meaning – Financial Planning ,
And financial planning means that you have to make a plan to fulfill all kinds of finance, financial needs, in your life,
and in simple words,
” Finance related requirements (financial needs) to complete the plan made (Planning) of the Financial Planning is called”
Now a Financial Needs try to understand the Financial Needs What is the way, and need to do their planning,
Financial situation requires ( Financial Needs) , such as –
Regular Income For Daily Needs – regular income for regular expenses,
Security of Income – Security of income, so that we continue to receive regular income (Income after retirement)
Emergency Funds – any kind of emergency situation or event, such as – economic disaster (Financial Crisis), illness, accident, etc. need FUND (money) ;
Short Term and Long Term Life Goal – Own home, own car, good education of children, and their wedding, going to visit country or abroad, and more,
In this way, financial needs may vary from us all individually, but we all need money related needs.
For every person, fulfilling his financial needs is a goal of his life, which is also related to his personal success.
Now therefore, you also have some of your, Financial Needs will come, and that inspires always make work and money we Financial Need, and therefore we all continue to work until retirement debut is cracking, So that we can fulfill all these financial needs ,
But the important question is that-
Do we all get success in fulfilling the financial need? – So the answer is – “No”,
only 5% of people achieve financial success, and the remaining 95% fail, and get caught in a Rat Race,
Why is creating a financial plan important?
I don’t need to tell you how much planning is important for success in any work, there is a saying in English about the importance of planning – Being Prepared is half the battle won , that is, if the preparation is good then the fight Half of the win is already guaranteed,
So in this way our financial success also depends very much on whether we have exactly the same financial plan or not.
To get financial success, it becomes very important to have a financial plan.
Benefits of Financial Plan
Apart from this, if you talk about the benefits of financial planning, there are many benefits of financial planning, such as –
- By doing financial planning, we can control our non-essential expenses, and in this way we can increase our cash flow income positively,
- You can maintain a proper balance between your income and expenses,
- With the help of a financial plan, we can invest our savings money as best as possible, such investments which have the least risk and we get maximum benefits, which are sufficient to meet our economic goals,
- With financial plan, we get help in completion of proper tax planning, retirement planning, and all big and small financial goals,
- With the help of a financial plan, we can provide a financial security to our family, and the future of the children with appropriate insurance cover so that in case of any untoward family members do not have to seek financial help from anyone else.
- We all want to make the best investment, in such a way, by investing according to financial planning, we can easily choose the best investment options for us.